12 February 2013
I have a plot of 100 sq. yard. I had taken a loan amounting to Rs. 4/-Lacs on 1.4.2005 for construction of two rooms, one kitchen for self occupation and started to get rebate of interest u/s 24B and principal payment u/s 80C. I have taken a further loan on 1.4.12 for further construction to complete the self occupied house. Whether rebate u/s 24B & 80C will be eligible for payment of interest & principal for both the loans.
12 February 2013
It can be assumed that your Phase-I is completed. ( As you have started to claim Interest) . Interest can be claimed only on completion of the construction. . You are eligible to get deduction of interest in respect to PHASE-II, only if completion takes place before 31.03.2013. Otherwise you have to claim 1/5th every year. . As far as Principal Repayment is concerned , in my view , you can claim it within the overall limit of 80C i.e Rs. 100000/-
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